Rhode IslandH78592026 Regular SessionHouse

AN ACT RELATING TO INSURANCE -- DOMESTIC INSURANCE COMPANIES .

Sponsored By: Brian Patrick Kennedy (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 0 benefits, 0 costs, 5 mixed.

Updated penalties for insurance violations

The insurance commissioner now uses one standard enforcement law across several areas. Portable electronics insurance, fraternal societies, and certain attorney‑run exchanges are handled under this single system. Some penalties become small civil fines: up to $100 for certain fire‑loss information breaches, and up to $100 per willful accident and sickness violation. Insurers that break the unfair‑practice rules can be fined up to $5,000. The commissioner can also suspend or revoke licenses for willful violations.

Better governance rules for insurers

All Rhode Island‑domiciled insurers must follow the state’s good corporate governance rules unless the law exempts them. The law takes effect upon passage.

New reciprocity rules for out-of-state insurers

Rhode Island now treats insurers and producers from another state the same way that state treats Rhode Island firms. Business placed in Rhode Island must go through a licensed resident or permitted nonresident producer, with a narrow multi‑state exception only if the other state offers the same access. Contracts made by noncompliant companies stay valid, but those companies cannot sue in Rhode Island courts while they remain noncompliant except through a domestic receiver. The insurance commissioner uses discretionary enforcement instead of automatic license revocations or fixed fines for foreign insurers and producers.

Stronger tools to handle failing insurers

When a Rhode Island insurer is put into court proceedings, the court appoints the state’s business regulation director as receiver. The receiver takes control of the insurer’s assets right away. The commissioner can require a deposit or bond, up to the contract’s one‑year value, when an insurer is in hazardous condition. Affiliates must give the insurer or receiver full records and system access at no extra cost. Money that affiliates collect for the insurer stays the insurer’s property, and key affiliate contracts fall under the receiver’s authority. The law also repeals the old forfeiture and receivership statutes and uses the updated framework.

Hurricane loss commission ended

The state ends the hurricane loss projection commission. Regulators and insurers no longer use this board to review models used in home insurance rate filings. This changes how hurricane risk is reviewed for residential property insurance filings.

Sponsors & Cosponsors

Sponsor

Brian Patrick Kennedy
Democratic • House

Cosponsors

Samuel A. Azzinaro
Democratic • House
Grace Diaz
Democratic • House
John G. Edwards
Democratic • House
William W. O'Brien
Democratic • House
Robert D. Phillips
Democratic • House
Patricia A. Serpa
Democratic • House
Mary Ann Shallcross Smith
Democratic • House

Roll Call Votes

All Roll Calls

Yes: 72 • No: 0

House vote • 5/12/2026

DOMESTIC INSURANCE COMPANIES PASSAGE